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Buyer Behaviour
•   Dominant Family Purchase - Cozenza 1985
•   Demographic Factors
•   The Consumer Buying Process
•   Maslow’s hierarchy of needs
•   UK socioeconomic classification scheme
•   Types of buyer behaviour
•   The Buying Decision Process
•   Organisational Buyer Behaviour
Dominant Family Purchase - Cozenza 1985

    PRODUCT              DOMINANT              TYPICAL
                         DECISION              DECISION
                          MAKER
  Women’s casual           Wife                Price, style
    clothing
    Vacations           Syncratic (both)   Whether to go, where

Men’s casual clothing      Husband          Type, price, style

   Life insurance          Husband         Company, coverage

   Homeowner’s             Husband         Company, coverage
     insurance
Household appliances         Wife           Style, brand, price
Demographic Factors
•   Age
•   Stage in family life cycle
•   Occupation
•   Economic circumstances
•   Lifestyle
•   social influence variables
       • family background
       • reference groups
       • roles and status
The Consumer Buying Process
Marketing Inputs
                                          Purchase Decisions
Product
                                          Product Choice
Price
Promotion
                          Consumer        Location Choice
                                          Brand Choice
Place                                     Other Choices




                   Psychological Inputs
                   Culture
                   Attitude
                   Learning
                   Perception

                                           Based on Cohen (1991)
Maslow’s Hierarchy of Needs
                   Self
                   Actualisation

         Esteem
          Social
         Safety
       Physiological
UK socioeconomic classification scheme
Class name        Social status             Occupation of head of            % of
                                                   household               population
    A             Upper middle                Higher managerial,               3
                                         administrative or professional
    B                Middle                Intermediate managerial,           14
                                         administrative or professional
   C1             Lower middle           Supervisors or clerical, junior
                                         managerial, administrative or        27
                                                  professional
   C2            Skilled working            Skilled manual workers            25

    D                Working               Semiskilled and unskilled          19
                                                   workers
    E        Those at lowest levels of   Pensioners, widows, casual or        12
                   subsistence               lower-grade workers
Types of buyer behaviour
• Complex buyer behaviour e.g. Intel
  Pentium Processor
• Dissonance-reducing behaviour (brand
  reduces after-sales discomfort)
• Habitual buying behaviour e.g. salt - little
  difference
• variety seeking behaviour - significant
  brand differences e.g soap powder
The Buying Decision Process
• recognition of the need e.g a new PC
• choice of involvement level (time and effort justified) e.g.
  two week ends
• identification of alternatives e.g. Dell, PC World
• evaluation of alternatives I.e. price, customer service,
  software support, printer/scanner package
• decision - choice made e.g Epsom
• action e.g buy Epsom model from Comet
• post-purchase behaviour I.e. use, breakdowns, etc
Organisational Buyer Behaviour
 ‘The decision-making process by which
 formal organisations establish the need for
    purchased products and services, and
    identify, evaluate, and choose among
      alternative brands and suppliers’

                 Kotler and Armstrong 1989
Characteristics of organisational
           buyer behaviour
• Organisation purpose - Goodyear Tyres
• Derived demand - follows cars and lorries
• Concentrated purchasing - stockholdings of rubber
• Direct dealings - large purchaser of basic rubber -
  no intermediaries
• Specialist activities - learns about the product
• Multiple purchase influences - DMU - Decision
  making unit

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E.buyer behaviour 5

  • 1. Buyer Behaviour • Dominant Family Purchase - Cozenza 1985 • Demographic Factors • The Consumer Buying Process • Maslow’s hierarchy of needs • UK socioeconomic classification scheme • Types of buyer behaviour • The Buying Decision Process • Organisational Buyer Behaviour
  • 2. Dominant Family Purchase - Cozenza 1985 PRODUCT DOMINANT TYPICAL DECISION DECISION MAKER Women’s casual Wife Price, style clothing Vacations Syncratic (both) Whether to go, where Men’s casual clothing Husband Type, price, style Life insurance Husband Company, coverage Homeowner’s Husband Company, coverage insurance Household appliances Wife Style, brand, price
  • 3. Demographic Factors • Age • Stage in family life cycle • Occupation • Economic circumstances • Lifestyle • social influence variables • family background • reference groups • roles and status
  • 4. The Consumer Buying Process Marketing Inputs Purchase Decisions Product Product Choice Price Promotion Consumer Location Choice Brand Choice Place Other Choices Psychological Inputs Culture Attitude Learning Perception Based on Cohen (1991)
  • 5. Maslow’s Hierarchy of Needs Self Actualisation Esteem Social Safety Physiological
  • 6. UK socioeconomic classification scheme Class name Social status Occupation of head of % of household population A Upper middle Higher managerial, 3 administrative or professional B Middle Intermediate managerial, 14 administrative or professional C1 Lower middle Supervisors or clerical, junior managerial, administrative or 27 professional C2 Skilled working Skilled manual workers 25 D Working Semiskilled and unskilled 19 workers E Those at lowest levels of Pensioners, widows, casual or 12 subsistence lower-grade workers
  • 7. Types of buyer behaviour • Complex buyer behaviour e.g. Intel Pentium Processor • Dissonance-reducing behaviour (brand reduces after-sales discomfort) • Habitual buying behaviour e.g. salt - little difference • variety seeking behaviour - significant brand differences e.g soap powder
  • 8. The Buying Decision Process • recognition of the need e.g a new PC • choice of involvement level (time and effort justified) e.g. two week ends • identification of alternatives e.g. Dell, PC World • evaluation of alternatives I.e. price, customer service, software support, printer/scanner package • decision - choice made e.g Epsom • action e.g buy Epsom model from Comet • post-purchase behaviour I.e. use, breakdowns, etc
  • 9. Organisational Buyer Behaviour ‘The decision-making process by which formal organisations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers’ Kotler and Armstrong 1989
  • 10. Characteristics of organisational buyer behaviour • Organisation purpose - Goodyear Tyres • Derived demand - follows cars and lorries • Concentrated purchasing - stockholdings of rubber • Direct dealings - large purchaser of basic rubber - no intermediaries • Specialist activities - learns about the product • Multiple purchase influences - DMU - Decision making unit